Jul 02, 2012
R827bn tax collection target setBack
Pretoria|South Africa|Manufacturing|Transport|Pravin Gordhan
© Reuse this
Speaking at the official opening of the 2012 tax season, in Pretoria, he said that to ensure sustainable economic growth, larger revenues were required; however, the only way to ensure increased revenue was to grow the economy and create tax-paying-level jobs.
South Africa also required the establishment of more businesses, particularly with an increased commercial base, and an increased production base, especially in manufacturing.
The South African Revenue Service (Sars) is expecting to collect over R827-billion in revenues from the entire South African tax base in the 2012 tax season and R927-billion in 2013.
Total revenue collection grew from R114-billion during the 1994/95 tax season, to over R742.7-billion in 2011. Of this, 12-million South African individual taxpayers, last year, accounted for R251.6-billion, or 33.8% of all revenue collection. Business activities, excise tax, corporate tax, VAT, capital gains and dividends, besides others, contributed the remainder.
At March 2012, South Africa held 13.7-million registered individual taxpayers, a jump from 1.7-million in 1994 and 6-million in 2010.
The number of companies that have registered for income tax had increased from 422 000 in 1994, to more than two-million in the 2011/12 financial year.
There were currently 664 000 registered for VAT in South Africa, up from 397 000 in 1994 Further, the number of registered employers grew from 177 000 in 1994, to a current 385 000.
Gordhan said the country aimed to invest in significant infrastructure projects and other activities to stimulate growth, with R845-billion earmarked for energy, transport, water and telecommunications infrastructure over the coming three years.
“If there is no growth plan accompanying a fiscal [plan], then economies will not be able to work their way out of economic difficulties,” he noted.
The Finance Minister also said that the relationship between government and taxpayers was important for South Africa to host a viable and meaningful democracy.
Every citizen was a part of growing South Africa and ensuring that the country maintained the financial strength and stability to absorb the “formidable” impact of the financial crisis of 2009.
“We have managed over the last ten years to maintain a low debt load, and while gross debt may migrate to 42% or 43% over the next three years, we are still better off than most countries as far as the debt load is concerned,” Gordhan said.
However, he pointed out that the R60-billion revenue lost during the recession had not yet been recovered and that government was working on sustaining its low debt while attempting to deliver services to citizens.
By last year’s deadline a record 4.86-million individuals and trusts had submitted their tax returns on time – 23% higher than the previous year.
Edited by: Mariaan Webb© Reuse this Comment Guidelines
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...